
For years, Delaware was the corporate capital of America, a state synonymous with business-friendly laws, tax advantages, and legal stability. But thanks to one activist judge, the entire house of cards is collapsing—and major corporations are fleeing so fast that even the governor is panicking.
At the center of this crisis? Judge Kathaleen McCormick, who torpedoed Elon Musk’s compensation package in a stunningly political ruling, despite the fact that Tesla shareholders overwhelmingly approved it—twice.
And the fallout? Catastrophic for Delaware.
Musk’s pay package wasn’t just any compensation deal—it was performance-based. The terms were simple: If he delivered extraordinary results, he’d get paid. If not, he’d walk away with nothing.
JUST IN: Delaware activist judge Kathaleen McCormick declines to reinstate Elon Musk’s Tesla compensation package, once again overruling the company’s board and more than 72% of its shareholders.
Instead, she ordered Tesla shareholders to pay $345 million in legal fees to… pic.twitter.com/a8dsypXpJa
— KanekoaTheGreat (@KanekoaTheGreat) December 2, 2024
Well, he didn’t just succeed—he delivered beyond anyone’s wildest expectations. Tesla’s value skyrocketed 10X, making shareholders billions. And in return, they rewarded Musk with the historic $56 billion package they had promised him.
Enter Judge McCormick, a Biden-connected Delaware judge who decided she knew better than the shareholders. She invalidated Musk’s contract—not once, but twice—claiming it was “excessive.” And in a move dripping with irony, she then turned around and awarded massive legal fees to the very lawyers who blocked Musk’s pay.
Think about that. A judge punished success while enriching lawyers—all in Biden’s backyard, at the same time the White House was waging an all-out war on Musk.
1.76 BILLION shares voted in favor of Elon Musk’s pay package (vs 528m against)
Judge McCormick overruled them all
Do not incorporate in Delaware pic.twitter.com/WZjKxRhv8A
— End Wokeness (@EndWokeness) December 3, 2024
The message was clear: Delaware’s courts are no longer neutral—they are now tools of political lawfare.
And now? Corporate America is bailing—hard.
- Meta and Dropbox are reportedly leaving Delaware, adding to a growing list of companies heading for the exits.
- SpaceX already moved to Texas, following Tesla’s relocation from California to Texas in 2021.
- Texas and Nevada have become the new preferred incorporation destinations—not just for startups but for some of the biggest companies in the world.
And Delaware’s economy? It’s in serious trouble.
Here’s the part the left didn’t think through:
Somewhere between 15%-20% of Delaware’s entire state budget comes from corporate franchise taxes.
For decades, venture capital firms and Fortune 500 companies have required their businesses to incorporate in Delaware because of its business-friendly legal system. It was a safe haven, a place where companies could count on fair rulings and protection from frivolous lawsuits.
this Delaware verdict awards the plaintiff’s attorneys $17,692 per hour for suing Tesla
$345,000,000/19,499.95 hours
Judge claims it’s worth it because they “litigated effectively” and “overcame hurdles”. incredible pic.twitter.com/9f73q4PIdZ
— Gregg Re (@gregg_re) December 3, 2024
Now? Delaware is radioactive. The uncertainty created by a single judge’s ruling has sent companies stampeding toward the exits—taking billions of dollars in tax revenue with them.
And the governor? Scrambling to fix the mess.
Hemingway once wrote that bankruptcy happens gradually, then suddenly—a slow decline fueled by bad decisions, followed by a sudden crash when reality finally catches up.
That’s exactly what’s happening to Delaware. For years, blue states have abused their power, pushing higher taxes, regulatory overreach, and political interference in business—and for a while, they got away with it.
Now? The bill is coming due.
Anyone have a list of companies that are planning, or have made the move, from Delaware to either Texas or Nevada?
Right now I have:
-Texas: Tesla, SpaceX, …
-Nevada: Dropbox, Neuralink, TripAdvisor, Pershing Square, TradeDesk, … pic.twitter.com/3DREnXwZ3f— Elad Gil (@eladgil) February 2, 2025
Companies are done playing along. They don’t need Delaware, and they certainly don’t need activist judges rewriting contracts and punishing success.
This isn’t just about Delaware. It’s about how far the left is willing to go to “get” Trump and Musk—even if it means destroying themselves in the process.
The Biden administration and its allies have waged a relentless campaign to weaponize the legal system against their political enemies. And every time they do, it backfires spectacularly.
- They attacked Musk—now Delaware’s corporate empire is crumbling.
- They went after Trump with lawfare—and he’s only getting stronger in the polls.
- They demonized Elon and pushed ESG policies—and companies are abandoning blue states for red ones.
At some point, you’d think they’d learn their lesson.
But nope. The left is so blinded by rage that they are willing to burn everything down if it means taking down their enemies—even if the only thing they accomplish is lighting themselves on fire.